Anti-fraud credit card dispatch system

ABSTRACT

An anti-fraud system for the dispatch of credit cards to customers, rendering the new card useless to anyone other than the intended customer. Validation of the new card is accomplished at any retail outlet by means of a timed sequence at the transaction processing computer which ensures that any first-time sales authorization request under the new card is followed immediately within a prescribed time interval by a reading of the old credit card number and expiry date. The system also operates if the old card is tendered first at a sales outlet after the new card has been issued. This unique sequence of events will then automatically invalidate the old card, validate the new card, and indicate to the card issuing company that the customer has acknowledged receipt of their new card. Since both the old, expiring card, and the new card are required in order to validate the new card, an unauthorized party in illegal possession of the new card only, cannot use it.

This application is a continuation-in-part of application Ser. No.07/999,121, filed Dec. 31,1992, now abandoned.

This invention relates to the process of validating renewal credit cardsdispatched from a company issuing credit cards to its customers in sucha manner that fraudulent use of a renewal credit card through theft orcustomer abuse is reduced.

An increasing area of concern for credit card-issuing companies today isthe fraudulent use of credit cards in situations where the issuingcompany is liable for all losses. This type of situation exists wheneverrenewal credit cards are sent to the customer, since the issuing companymaintains liability for the credit cards until it can be proven that theintended customer has safely received the credit card. The type of theftand fraudulent usage occurring in these circumstances can be summarizedin three general categories, namely; postal system theft, third partywrong address or mailbox theft, and customer fraud. Dispatching renewalcredit cards by registered mail has been used in the past to try andguarantee receipt of the credit card by the intended customer. However,this method has become extremely expensive, poses a slight inconvenienceto customers, does not prevent theft from within the postal system, andin fact does not guarantee that the credit card is delivered to theintended addressee, that is, the customer.

Rudolph in U.S. Pat. No. 3,683,806 describes a theft-proof credit: cardassembly consisting of two halves which are mailed separately over thecourse of several days to the customer, who then reassembles the halvesto produce a valid credit card. This method has the disadvantages ofdoubling the postage costs, requiring consistent foolproof assembly byvarious credit card holders, and not eliminating totally the risk oftheft either at the mailbox or at an old former, or otherwise incorrect,address.

U.S. Pat. Nos. 4,947,027 and 5,061,844 both describe secure credit cardsystems which involve the design and distribution of a new type ofcredit card and the use of a secret code which must be obtained from thecustomer. Implementation of an efficient system to obtain and recordsecret codes from customers is an expensive process, in addition to theextra cost of a new credit card design.

The use of an effective start date, as well as an expiry date, on acredit card has also been implemented to shorten the time period withinwhich an issued credit card can be abused. However, this method requiresexpensive and timely follow-up communications with the customer toverify receipt of the issued credit card. This technique does not solvethe problem of mailing credit cards to old or otherwise incorrectaddresses, and has little material effect on postal system theft.

The general public knowledge of these types of problems, and pooreconomic conditions, have given rise to a type of fraudulent activitymore difficult to deal with, wherein the card holder receives therenewal credit card, abuses it by using it with an alternate signaturestyle, and then claims never to have received it. In a variation of thisform of abuse, the card holder allows a friend or close relative to usethe credit card, with a wholly fraudulent signature.

This invention seeks to curtail the potential for an individual tocommit the aforementioned types of fraud with renewal credit cards.According to this invention, a credit card is sent by mail, for examplefrom the issuing bank, to the customer. Being a renewal credit card,there exists at least one piece of information on the credit card whichdiffers from the old credit card, which is most likely to be the expirydate, but other indicia may also be used. Upon sending the credit card,the issuing agency, for example a bank, records the new expiry dateand/or other pertinent indicia for the renewal credit card in a computermemory file linked with the customer's credit card number and name. Uponreceiving the renewal credit card, the customer signs the renewal creditcard, but does not destroy the old credit card. At the customer'sconvenience, the next time a credit card purchase is made, the customerfirst hands over the recently received renewal credit card forprocessing. The computer then retrieves all of the credit cardinformation, either via a standard credit card reader machine, or bytelephone between the vendor and the transaction processing clerk. Thecomputer recognizes that this is an attempt to use the renewal creditcard and initiates a short timed interval, conveniently about threeminutes, for example, called the transfer duration threshold time. Atthe same time, the computer sends a message back to the vendor, eithervia the credit card reader display or by means of a transactionprocessing clerk, which stipulates that the old credit card informationmust now be processed in order for the transaction to be authorized andcompleted. The computer then proceeds with the processing of othertransaction requests. If the computer receives the old credit cardinformation within the specified short time interval, then the renewalcredit card is automatically validated and approved for immediate use.At the same time, the old credit card is invalidated in the computermemory. The transaction at the vendor's store is then processed asusual, dependent on the status of the customer's account. If the oldcredit card information is not received by the computer within thespecified short time interval following use of the renewal credit card,the renewal credit card will not be validated and authorization is notgiven for that particular transaction. Should the credit card holderfail to validate their renewal card on their first attempt, the systemwill allow multiple attempts until validation is successfully completed.Only with both the old credit card and the renewal credit card cansuccessful validation eventually be achieved.

This renewal credit card validation system will work equally well if thesequence is reversed, and the old credit card is presented first. Thecomputer will again recognize that a renewal credit card has beenissued, and will call for presentation of the renewal credit card withinthe prescribed transfer duration threshold time. Thereafter, thetransaction again is completed in the usual way, and the old credit cardinvalidated in the computer memory. This system will also work, but isless secure, if identification of the location where credit cards aretendered, that is the transaction source location code, is used ratherthan a time interval. Alternatively, both a time interval and thetransaction source location code can advantageously be used together.

This invention has the primary advantage of making far more difficultthe fraudulent use of renewal credit cards without changing in anymanner either the credit cards, the currently used electronic readers,or the general procedure of making purchases. The method is also totallycompatible with the older verbal authorization process via telephone.Since the old credit card is immediately rendered useless upon using itto validate the renewal credit card, the problem of multiple validcredit cards in existence at the same time is also eliminated. Thissystem is also convenient for the credit card customer since the renewalcredit card validation process may take place at any time after receiptof the credit card, and at any sales outlet which accepts thatparticular credit card. Indeed, this system gives the option of allowingan old credit card to be used to validate a renewal credit card evenafter the expiry date on the old credit card has elapsed. This method ofcredit card validation may also be usefully interpreted as acceptanceverification by the intended card holder to whom the renewal credit cardwas dispatched. It has the significant advantage that a fraudulent useris highly unlikely to be in possession of both the old and the renewalcredit cards, and thus cannot readily validate the renewal credit cardin order to abuse it.

In the following description, the invention will be described primarilyin the context of the commonest form of credit card, that is thoseissued by banks and similar institutions. The invention however is notlimited to this particular species of credit card, and can be applied toalmost any of the credit cards now commonly in use. Thus in addition tobank credit cards, it includes debit cards, credit cards issued bystores and other product retailers, trust companies offering creditservices, and other credit agencies.

In a first embodiment this invention seeks to provide a method forvalidating a renewal credit card issued to replace an old credit card,both of which credit cards are in the possession of the credit cardholder, wherein each credit card bears information identifying thecredit card holder, and information distinguishing the renewal creditcard from the old credit card, which method comprises the followingsteps:

(i) tendering, by the credit card holder, the first of the two creditcards to a transaction recipient authorized to accept transactions madeinvolving the credit card and having a transaction source location code;

(ii) transferring from the transaction recipient to a computer memory atleast some of the information recorded on the first credit card,including at least some of the distinguishing information;

(iii) comparing within the computer the transferred information with theinformation on record concerning the first credit card, and determiningthat a computer record for the second credit card exists bearing thesame information identifying the credit card holder;

(iv) transferring to the transaction recipient a request for the creditcard holder to tender to the transaction recipient the second creditcard;

(v) tendering the second credit card to the transaction recipient;

(vi) transferring from the transaction recipient to the computer memoryat least some of the information recorded on the second tendered creditcard, including at least some of the distinguishing information;

(vii) comparing within the computer the transferred information derivedfrom the second tendered credit card with the information on record,including that the transferred information derived from the secondtendered credit card correlates with the information on record for thesecond credit card, including correct information distinguishing thesecond credit card tendered in step (v) from the credit card firsttendered in step (i);

(viii) determining in the computer that the information transferred ineach of steps (ii) and (vi) also jointly satisfies a further securitycriterion, chosen from at least one member of the group consisting of:

(a) that the sequence of steps starting from step (iv) through thecompletion of step (vi) collectively take place within a predeterminedtime period; and

(b) that the information transfers in both step (ii) and step (vi)originate from the same transaction recipient, and include the sametransaction source location code; and

(ix) validating the tendered renewal credit card for further subsequentuse, and invalidating the old credit card against any further use, byrevising the computer memory records to accept only the renewal creditcard having its distinguishing information.

In this procedure, either the old credit card, or the renewal creditcard, may be tendered as the first credit card, in step (i). The otherof the two credit cards is then tendered as the second credit card instep (v).

Preferably, the method includes in a further step (x) transferring tothe transaction recipient a message indicating that the renewal creditcard has been validated.

Preferably, the information is transferred in steps (ii) and (vi) bymeans of a credit card reader, and the indicia carried by the creditcards includes at least some machine readable information.Alternatively, the information is transferred by verbal means, and theindicia include at least some visually readable information.

Preferably, the security criterion chosen for step (viii) is option (a),that is, that the second credit card is processed within a specifiedtime period, starting with the request in step (iv) to tender the secondcredit card. The most secure method is to choose both of options (a) and(b), that is, that the information has to come from the same source andwithin the specified time period.

One important element in this method of validating a credit card is thetransaction recipient, since the transaction recipient is involved inthe validation procedure. In many cases, the transaction recipient willbe a person, such as a sales clerk (handling any form of sale, lease orrental transaction) or a bank official such as a teller. Alternatively,the transaction recipient may be a banking machine from which the creditcard holder can withdraw money. When the transaction recipient is amachine of some nature, the request for the other credit card called forin step (iv) is made by displaying a suitable message on the machineviewing screen. If the correct second credit card is tendered to themachine within the preset time period the transaction is completed inthe usual way, and the renewal credit card validated. If the correctcredit card is not presented, then the transaction is terminated, andthe renewal credit card is not validated.

The invention will now be discussed by way of reference to the attachedFigures, in which:

FIG. 1 illustrates the renewal credit card validation process by meansof a credit card reader;

FIGS. 2, 3, 4, and 5 illustrate a representative section of part of thedata processing computer's memory contents for one credit card file,shown at various stages throughout the validation process; and

FIG. 6 is a flow chart illustrating the computer's renewal credit cardvalidation process.

Referring first to FIGS. 1, and 2 through 5, a credit card company orbanking institution issues a renewal credit card 4 (FIG. 1) to acustomer with representative credit card number XYZ. The renewal creditcard 4 has a new expiry date 41 for example, November 1995, which alongwith the customer's name and credit card number is embossed in readableform onto the credit card and stored in digital form on the creditcard's magnetic stripe. Other indicia, such as a change in a subsidiarycode to the credit card number, can also be changed, either instead of,or in addition to, information on a new expiry date. For clarity,reference will be made below only to expiry dates. Prior to the actualdispatch of the renewal credit card to the card holder, the dataprocessing con, puller memory is as shown in FIG. 2. Each of theregisters for CARD NUMBER, 61, OLD DATE, 71, NEW DATE, 81, TIMESTAMP,91, and NEW FLAG, 101, are as shown. The TIMESTAMP register 91 formingpart of the customer file memory content is usually in a reset mode ofzero days, zero hours, and zero minutes. This register 91 is used torecord the time of day that either a renewal credit card 4, or an oldcredit card 5, is used as the first credit card to initiate a salestransaction and validation sequence after a renewal credit card has beendispatched but not yet validated, as will be discussed further, beIow.The memory also contains a NEW FLAG register 101 which is used toindicate that the first credit card which was processed for a pendingvalidation sequence was the renewal credit card 4. The file memorycontents for the credit card numbered XYZ will generally include otherinformation such as the customer's name, address and account status,which are not shown as they are largely not relevant to the invention.However, the partial content shown in FIG. 2, and the similarly numberedparts shown in FIGS. 3,4, and 5, are sufficient to illustrate theembodiment of this invention.

As soon as the renewal credit card is sent to the customer, the issuingcompany ensures that the data processing computer 3 stores the creditcard's new expiry date into the NEW DATE register 82 (FIG. 3). The OLDDATE register 72 still contains the old credit card expiry date whichfor the illustrated example is November 1992. The TIMESTAMP register 92and the NEW FLAG register 102 are still set at zero.

The customer then wishes to make a purchase in a store supplied with acredit card reader 1, which is typically linked to a central dataprocessing computer 3 by means of a communications network 2 (FIG. 1).The flow chart in FIG. 6 includes two possibilities: that a renewalcredit card does not exist, and that a renewal credit card does exist,and is in the possession of the credit card holder. In both cases, thesequence is initiated by the customer handing over a credit card, whichthe vendor passes through the credit card reader 1. The encoded creditcard number XYZ and expiry date are among the information extracted fromthe magnetic stripe on the credit card and transmitted over thecommunications network 2 to the data processing computer 3.

If no renewal credit card has been issued, and the old credit card 5 istendered, the data processing computer 3 receives and stores the creditcard number with expiry date in process step 11, and uses the creditcard number XYZ to look up the memory contents for the correspondingcustomer file in process step 12. The OLD DATE register 71 for creditcard number XYZ in register 61 is then compared in process step 13 tothe NEW DATE register 81 in the same file to check if they are equal(FIG. 2). "Equal dates", that is the two expiry dates in the registers71 and 81 are the same, signify the normal condition of a validatedcredit card requesting access, and processing therefore continues withthe old credit card expiry date confirmation in process step 22, datecheck for expired credit cards, and transaction calculations in processstep 24.

If a renewal credit card 4 has been issued, and is tendered, as in thecurrent example, the data processing computer will look up the memorycontents for the customer file corresponding to credit card number XYZin register 62. The OLD DATE register 72 is then compared in processstep 13 to the NEW DATE register 82 (FIG. 3). The computer willrecognize that the dates in the registers 72 and 82 are unequal."Unequal dates", that is the expiry dates in the registers 72 and 82 aredifferent, imply that a renewal credit card 4 has already been sent tothe customer, but that the renewal credit card has not yet beenvalidated for use. At this stage 14, a reference current time isgenerated, and a time difference is calculated between the referencecurrent time and the time contained in the TIMESTAMP register 92 (FIG.3). The time difference is then compared to a fixed transfer durationthreshold value which represents the longest time duration allowedbetween processing of the two consecutive required credit cards by thedata processing computer in any order, the renewal credit card 4 and theold credit card 5, for the purpose of renewal credit card validation.This will ordinarily be a short time period, generally less than tenminutes. Assuming a transfer duration threshold of three minutes, thetime difference comparison for the given example is found not to be lessthan or equal to the three-minute limit since the TIMESTAMP register 92contains zero initially. The TIMESTAMP register 93 is then preset to thecurrent day and time in process step 15; for the given example register93 shows 5:56 p.m. on day 332, that is November 28th. The credit cardexpiry date as read by the data processing computer 3 is then comparedin process step 16 with the contents of the NEW DATE register 83, whichcontains the renewal credit card expiry date, November 1995. Since therenewal credit card 4 has been read, the expiry date comparison isaffirmative and the NEW FLAG register 103 is then preset in process step17 to a value of one to indicate that the first credit card read was arenewal credit card 4. At this point the memory contents for thecustomer file corresponding to credit card number XYZ in register 63 areas shown in FIG. 4. A "READ OLD CARD" or equivalent message in processstep 18 is then sent to the credit card reader 1 electronic display,after which the processing of the customer file for credit card numberXYZ is terminated in process step 19.

The vendor, upon reading the "READ OLD CARD" message, requests the oldcredit card 5 from the customer, and promptly passes it through thecredit card reader 1, followed by entry of the purchase transactiondetails as usual. The data processing computer 3 reads the credit cardnumber with expiry date in process step 11 and accesses the customerfile for credit card number XYZ once again in process step 12. Since thecontents of the two expiry date registers 73 and 83 still differ inprocess step 13, processing continues with the time difference versustransfer duration comparison in process step 14. Since the old creditcard 5 was processed promptly after processing of the renewal creditcard 4 within the required time period, the difference between thereference current time and that recorded in the TIMESTAMP register 93 isless than the allowed three-minute transfer duration threshold. The NEWFLAG register 103 is therefore tested next in process step 25 todetermine which credit card was used first in the current validationprocess. Since the register has been set equal to one and has not beenaltered, as shown at 103 (FIG. 4), the NEW FLAG test is affirmative,indicating the renewal credit card was used first. The credit cardexpiry date as read by the computer is then compared with the contentsof the OLD DATE register 73 in process step 26 to verify that the creditcard is indeed the old one as required. If the comparison result isnegative, then the renewal credit card 4 has been erroneously inputagain, and the "READ OLD CARD" message in process step 18 is reissuedfollowed by termination of the processing of customer file for creditcard number XYZ in process step 19.

If the comparison result in step 26 (FIG. 6) is positive, this verifiesthat the old credit card 5 has been processed within the allowed threeminutes after the processing of the renewal credit card 4. Validation ofthe renewal credit card 4 and coincident invalidation of the old creditcard 5 is achieved at this stage 28 by resetting the contents of thememory 64 for credit card number XYZ (FIG. 5). The OLD DATE register 74containing the old expiry date of November 1992 is reset equal to thecontents of the NEW DATE register 84 which contains the new expiry dateNovember 1995. The TIMESTAMP register 94 in process step 29 is thenreset to zero, the NEW FLAG register 104 is reset to zero (FIG. 5), anda message is issued back to the credit card reader 1 electronic displaysuch as "NEW CARD VALIDATED" in process step 30. Processing thenproceeds from this point with the regular transaction calculations inprocess step 24.

In the preceding example, the validation process has been initiated bythe processing of the renewal credit card 4 first. An initial processingof the old credit card 5 will also lead to renewal credit cardvalidation on as shown by the following example.

The customer first hands over their old credit card 5 to the vendor whenmaking a purchase, and system processing of the credit card data isidentical to the "renewal credit card first" version up to process step16. At this point the negative response indicates that the old creditcard has been used first in the validation process, therefore in processstep 20 the NEW FLAG register is cleared to zero. Next in process step21 the message "READ NEW CARD?" is issued back to the credit card reader1 electronic display. The question form of response is used here sincethe customer may not have received their renewal credit card yet and maysimply be making a purchase with the old credit card 5. However, thisdisplay functions as a reminder to the customer that the renewal creditcard 4 has already been dispatched to them. A credit card expiry datecheck in process step 22 is performed and the old credit card 5 isallowed access to the existing file processing calculations in step 24,where an expired credit card date is routinely checked for, andtransaction details are entered into, the customer's file. In this casethe customer is still allowed to make a credit card purchase on theirold credit card 5, dependent on the customer's account status andprovided that the credit card has not yet expired.

If the customer also has their renewal credit card 4, and the creditcard is promptly passed through the credit card reader 1 in response tothe "READ NEW CARD?" invitation after processing of the old credit card5, then one arrives at process step 14 again for the time differencecalculations. Since the former processing of the old credit card 5 set atimestamp similar to that at 93, and the renewal credit card 4processing followed promptly, the current time minus the timestamp valuewill be less than the allowed three minutes for the transfer durationthreshold. The affirmative response leads to process step 25 where theNEW FLAG register is tested. Since the NEW FLAG register was cleared tozero during the previous processing of the old credit card 5, an advanceto process step 27 is the result of the NEW FLAG register test. Inprocess step 27 the input credit card is checked to see if it is therequired renewal credit card 4, and if not, then the "READ NEW CARD?"message is reissued in step 21, followed by subsequent old credit card 5processing, if required, in process steps 22 and 24. If the requiredrenewal credit card 4 is verified in process step 27, as in thisexample, then the renewal credit card validation procedure is performedin process steps 28, 29, and 30 as described earlier. After process step30, the regular transaction calculations are made in process step 24, ifrequired, for example, when using an expired old credit card to initiatethe validation of a renewal credit card and making a purchase at thesame time. Process steps 22 and 23 function to disallow purchasetransaction authorization with an invalidated old credit card, eventhough that credit card has not yet reached its expiry date. Validationof the renewal credit card automatically precludes further use of theold credit card.

Although the electronic credit card reader version has been described,this invention works equally well with the older verbal authorizationsystem by telephone conversation between a vendor and a transactionprocessing clerk. This method is also used when, for some reason, theelectronic credit card reader fails to read the encoded credit card dataproperly even though the credit card is a genuine one. If a renewalcredit card which has not yet been validated is proffered for thecurrent transaction,the vendor is requested over the phone to ask thecustomer for their old credit card. The vendor must also see the oldcredit card, and read its credit card number and expiry date (or otheridentifying indicia) to the transaction processing clerk before creditcard validation and subsequent transaction authorization may occur.

In the preceding description it is assumed that the credit card readerincludes a visual display means. It is not uncommon for the credit cardreader to form part of a cash register, in which case the issuedmessages in process steps 18, 21, and 30 (FIG. 6) utilise the readoutmeans in the cash register. This may be an electronic display, orprinted message similar to a sales slip. In either case, the credit cardreader has associated with it a readout means whereby the requiredmessages may be conveyed.

In a similar fashion, the validation process is also applicable to atransaction carried out through a banking machine. The procedure will bemore or less the same as that described above, for either the old creditcard being presented on its own, or together with the renewal creditcard. The various needed instructions are provided to the credit carduser by the visual display on the banking machine. It is also possiblefor the machine to retain, rather than simply invalidate, the old creditcard when a renewal credit card is validated.

It should also be appreciated that: although the expiry date wasspecifically used as the item of difference between the old and renewalcredit cards in the preceding description, any type and quantity ofcharacters may be used to differentiate the renewal credit card from theold credit card. Generally, any differentiating characters will bealphanumeric, but other indicia can also be used. The differentiatingcharacters do not necessarily have to be visually readable on the creditcard surface, although at least some visually readable characters arerequired when verbal transaction authorization by telephone is used.

The unit of time in day of the year, hour of the day, and minute of thehour has been used for the TIMESTAMP, and minutes are used in thetransaction duration threshold values described earlier, although anyarbitrary unit of time may be used for this purpose, such as computerclock cycles, for example.

An alternate reference standard to that of time used in the describedprocess is location. The timestamp would be replaced in this case by thetransaction source location code for the first credit card read by thesystem, whether a renewal credit card or an old credit card. The second"activating" credit card when processed then generates a secondtransaction source location code reference. The two reference sourcecodes, usually consisting of multi-digit alphanumeric characters, arethen compared to each other and must be equal for renewal credit cardvalidation to proceed. This implies that both a customer's renewalcredit card and their old credit card must be used at the same vendorlocation in order for renewal credit card validation to occur. Althoughthis method of validation using source location codes is not as secureas the timestamp method, particularly for single-vendor type creditcards, however, it does offer a reasonable level of security formulti-vendor credit cards. If sufficient storage facilities and adequateprocessing time is available in the credit card issuing company centraldata processing computer, then both the timestamp and source locationreference modes may optionally be implemented together at the same timeto provide an improvement in security level.

The invention process steps outlined in the flow chart of FIG. 6 areintended to illustrate the general scope of this invention, and theprocess steps and their sequence may be varied to suit the individualneeds of the credit card issuing company. For example, the process couldallow for a transaction dollar amount to be entered immediately afterthe renewal credit card has been passed through the credit card readerfirst, rather than after the old credit card is read, without changingthe scope and intent of the invention. Although the various processsteps have been described with reference to software resident in a dataprocessing computer, the basic invention may also be readily implementedin firmware or hardware, either centrally located or at remote satelliteprocessing centres.

The embodiments of the invention in which an exclusive property orprivilege is claimed are defined as follows:
 1. A method for validatinga renewal credit card issued to replace an old credit card, both ofwhich credit cards are in the possession of the credit card holder,wherein each credit card bears information identifying the credit cardholder, and information distinguishing the renewal credit card from theold credit card, which method comprises the following steps:(i)tendering, by the credit card holder, the first, of the two, creditcards to a transaction recipient authorized to accept transactions madeinvolving the credit card and having a transaction source location code;(ii) transferring from the transaction recipient to a computer memory atleast some of the information recorded on the first credit card,including at least some of the distinguishing information; (iii)comparing within the computer the transferred information with theinformation on record concerning the first credit card, and determiningthat a computer record for the second credit card exists bearing thesame information identifying the credit card holder; (iv) transferringto the transaction recipient a request for the credit card holder totender to the transaction recipient the second credit card; (v)tendering the second credit card to the transaction recipient; (vi)transferring from the transaction recipient to the computer memory attransaction recipient; (vi) transferring from the transaction recipientto the computer memory at least some of the information recorded on thesecond tendered credit card, including at least some of thedistinguishing information; (vii) comparing within the computer thetransferred information derived from the second tendered credit cardwith the information on record, including that the transferredinformation derived from the second tendered credit card correlates withthe information on record for the second credit card, including correctinformation distinguishing the second credit card tendered in step (v)from the credit card first tendered in step (i); (viii) determining inthe computer that the information transferred in each of steps (ii) and(vi) also jointly satisfies a further security criterion, chosen from atleast one member of the group consisting of:(a) that the sequence ofsteps starting from step (iv) through the completion of step (vi)collectively take place within a predetermined time period; and (b) thatthe information transfers in both step (ii) and step (vi) originate fromthe same transaction recipient, and include the same transaction sourcelocation code; and (ix) validating the tendered renewal credit card forfurther subsequent use, and invalidating the old credit card against anyfurther use, by revising the computer memory records to accept only therenewal credit card having its distinguishing information.
 2. A methodaccording to claim 1 further including (x) transferring to thetransaction recipient a message indicating that the renewal credit cardhas been validated.
 3. A method according to claim 1 wherein thetransaction recipient is a person.
 4. A method according to claim 1wherein the transaction recipient is a machine adapted to process acredit card of the type tendered.
 5. A method according to claim 1wherein the credit card tendered in step (i) is the renewal creditcard;the second credit card determined to exist in step (iii) is the oldcredit card; and the credit card tendered in step (v) is the old creditcard.
 6. A method according to claim 1 wherein the credit card tenderedin step (i) is the old credit card;the second credit card determined toexist in step (iii) is the renewal credit card; and the credit cardtendered in step (v) is the renewal credit card.
 7. A method accordingto claim 1 wherein the information is transferred in steps (ii), and(vi) by means of a credit card reader; andwherein the indicia carried byboth of the credit cards tendered in steps (i) and (v) include at leastsome machine readable information.
 8. A method according to claim 3wherein the information is transferred in steps (ii) and (vi) at leastin part by verbal means; andwherein the indicia carried by both of thecredit cards tendered in steps (i) and (v) include at least somevisually readable information.
 9. A method according to claim 1 whereinthe information is transferred in steps (ii), and (vi) by means of acredit card reader;wherein the indicia carried by both of the creditcards tendered in steps (i) and (v) include at least some machinereadable information, and wherein the request in step (iv) istransferred by causing a readout means associated with the credit cardreader to display the request.
 10. A method according to claim 3 whereinthe request in step (iv) is transferred at least in part by verbalmeans; andwherein the indicia carried by both of the credit cardstendered in steps (i) and (v) include at least some visually readableinformation.
 11. A method according to claim 1 wherein the credit cardis tendered in step (i) to facilitate a transaction, and the transactioninformation transfer and the credit card validation steps are combinedinto one operation.
 12. A method according to claim 1 wherein the atleast one chosen further criterion in step (viii) is (a).
 13. A methodaccording to claim 1 wherein the at least one chosen further criterionin step (viii) is (b).
 14. A method according to claim 1 wherein the ateast one chosen further criterion in step (viii) is both (a) and (b).15. A method according to claim 1 wherein the indicia on the creditcards distinguishing the old credit card from the renewal credit card isalphanumeric information.
 16. A method according to claim 15 wherein thealphanumeric information includes the expiry date.
 17. A methodaccording to claim 16 wherein the expiry date information includes themonth and year of expiry.
 18. A method according to claim 1 wherein thepredetermined time period of step (viii) is less than 10 minutes.
 19. Amethod according to claim 18 wherein the time period is 5 minutes.
 20. Amethod according to claim 18 wherein the time period is 3 minutes.